Views on Rollover by Ms. Sneha Seth (Derivatives Analyst, Angel Broking):
"March series' fabulous rally of 7% was followed by a subdued one. In the April series, the fear index (India VIX) surged 40% but benchmark index traded in a range of merely 300 points. In the initial part of the series, index consolidated and in the midst, fresh buying emerged to hit fresh record highs of 11856.11; but unfortunately this move was short lived as we saw sharp profit booking to eventually conclude the series marginally higher.
It was observed that in the intraday up moves fresh long were formed; whereas, a decline in market was mainly due to profit booking and not short formation. Rollovers in Nifty stood at 81%, highest post September 2016. Wherever, we witnessed some profit booking, stronger hands preferred adding fresh longs. In fact, they rolled their bullish bets in index futures, resulting their 'Long Short Ratio' jumping from 69% to 75% series on series. Recently, 11550-11570 has been acting as a sheet anchor for the Nifty and if we go back to the March series, there is an important observation that we had strong long rollovers with Nifty concluding the same series at 11570. This may be a coincidence but if we relate it with the above mentioned statistical evidence, this support has earned more respect from the market participants. Considering the rollover figures, we remain upbeat on market and expect Nifty to rally towards another psychological mark of 12000.
Rollover for the banking index stood at 75%, slightly lower than 3-month average of 76%. BankNifty under-performed the benchmark index due to decent amount of profit booking. Going ahead, 29400-29500 is an immediate support; whereas, 39400-39500 should act as a hurdle."